Southwest fined $200G for bumping passengers

Southwest Airlines Co., which bumped more passengers than any U.S. carrier last year, has been fined $200,000 for violating rules on kicking passengers off oversold flights.

The Transportation Department said Tuesday that it reviewed passenger complaints and found many cases of Southwest failing to promptly pay bumped passengers and give them written notices of their rights.

Airlines are allowed to sell more seats than they have because some passengers don’t show up. In other businesses, that would  violate laws against deceptive sales tactics. Airlines get a break  under the theory that they can offer lower fares if they don’t get stuck  with empty seats because of no-shows.

Last year, Southwest bumped 13,113 passengers — 80 percent  more than the next closest carrier. Southwest carried the most U.S. passengers, however, and travelers faced a greater chance of being bumped on some other airlines, with American’s regional  affiliate, American Eagle, being the worst.

Federal rules require airlines to first ask for volunteers who will give up their seats in exchange for compensation. After that, airlines can begin to bump passengers who bought tickets. Most passengers bumped from flights are entitled to up to $800 in cash.

Airlines are required to give bumped passengers a written  statement detailing their rights and explaining how the airline decides who gets bumped when flights are oversold.

The airlines can offer travel vouchers but only after telling the
passengers that they are entitled to get cash or a check instead, and the amount that they’re owed.

In a consent order, the Transportation Department said it would waive $90,000 of the civil penalty if Southwest doesn’t break the rules again in the next year. Also, Southwest can use $20,000 of the fine to develop ways to notify passengers of their rights and the airline’s policy on overselling flights.

Southwest did not immediately return a message requesting comment.

In the consent order dated Tuesday, the company said it mostly follows the rules — the number of violations was not disclosed —  but would provide more training for employees to improve compliance. The airline also said it would give customers more  notice of their rights when they buy tickets on the company website.